RAIT Financial Trust (RAS) Shares Tick Up after Upgrade at Zacks Investment Research

Zacks Investment Research (RAIT Financial Trust: NYSE) shares rose in value Wednesday Dec 28 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, U.S. stocks were little changed on Wednesday, as investors found few reasons to keep pushing shares higher towards the 20,000 mark.

The Dow Jones Industrial Average DJIA, -0.11% rose 3.1 points to 19,949, essentially unchanged on the day. The S&P 500 SPX, -0.39% lost 3 points, or 0.1%, to 2,266 while the Nasdaq Composite Index COMP, -0.59% slipped 6.4 points, or 0.1%, to 5,482.

Analysts at Zacks Investment Research upgraded shares of Zacks Investment Research (RAIT Financial Trust: NYSE) from Sell to Hold today. The company currently has a rating of Hold on the stock. The one-year price target of $3.10 is a decrease compared to the opening price of $3.35, resulting a fair amount of other analysts to report on the company recently. Looking back over the last 52 weeks, RAIT Financial Trust stock has a high of $3.40. Usually, after analysts publish an upgrade report on a stock, they will later issue recurring updates, such as a price target change.

Shares of Zacks Investment Research (RAIT Financial Trust: NYSE) opened at $3.35 on Tuesday and has traded in a range between, $3.31 and $3.36, and last traded at $3.32, which represents a spike of $0.01 or 0.30% from the previous closing price.

Zacks Investment Research (RAIT Financial Trust: NYSE) now has a market cap of 306.03M.

Zacks Investment Research (RAIT Financial Trust: NYSE) Average Daily Trading Volume

The stock’s average daily volume is 443,846 shares out of a total float 62,807,000 and some 22,203 shares crossed the trading desk yesterday, lower than the norm. Swing traders often use upticks in trading volume to identify substantial volume growth or dissemination by institutional investors, so trading volume is likely to increase in the next few days.

While higher trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is crucial.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors retain teams of analysts that research thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

Zacks Investment Research (RAIT Financial Trust: NYSE) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By tracking the activity of these professional investors—and the moving averages they affect— traders can make the best trades.

With that in mind, Zacks Investment Research (RAIT Financial Trust: NYSE) now has a 50-day MA of $3.11 and 200-day MA of $3.10. It has traded in a 52-week range between $1.85 – 3.40 and today’s last price is 2.35%% lower than the 52 week high of $3.40.

Earnings growth is a crucial factor to look at when investing in stocks and investors seek companies that have been successful at growing their earnings at least 25% or more over the past 3 years.

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